The Energy Regulation and Markets Review - Stikeman Elliott

Indonesia
With the help of the Danish government, the Indonesian government established
the Energy Efficiency and Conservation Clearing House Indonesia (‘EECCHI’), a service
facility under the MEMR, which aims to promote and enhance energy conservation and
energy efficiency in Indonesia.
The EECCHI systematically collects and processes information about energy
efficiency and conservation in Indonesia. It also provides information services in the
field of energy efficiency and conservation in the household, industrial, commercial and
transportation sectors. The EECCHI also plays an active role in raising public awareness
to implement energy conservation and energy efficiency through various outreach
programmes, training, workshops, conferences and seminars.
The EECCHI was originally an initiative of the Directorate of New Renewable
Energy and Energy Conservation, which in August 2010 became the Directorate General
of New Renewable Energy and Energy Conservation, under the MEMR.
The USAID Indonesia Clean Energy Development (ICED) project is also
working with Indonesian government agencies (central, provincial, and local), PT PLN,
non‐governmental organisations, communities, universities and the private sector to
provide support for Indonesia’s clean energy objectives. The project will support the
Director General for Renewable Energy and Energy Conservation in the MEMR to
improve energy sector policies and coordination; work with three provinces, local
governments, and PT PLN in Sumatra to increase the development of clean energy
projects; and increase institutional capacity and public outreach of government and
other stakeholders for clean energy.
VI
THE YEAR IN REVIEW
Regulations affecting energy business and energy fuel have been issued to implement
the 2003–2020 National Energy Policy, the Energy Blueprint 2006–2025 and the 2009
Electricity Law.
In the energy sector, the government has issued Presidential Decree No. 4 of 2010
as a legal base for the 10GW second-phase acceleration programme. This programme is
aimed at increasing electricity supply to support increasing demands and diversifying
power stations energy sources.
Presidential Decree No. 4 of 2010 states that PT PLN must carry out an
accelerated electricity development programme by harnessing renewable energy, coal,
and gas. This decree forms a legal base for PT PLN to carry out an accelerated electricity
development programme using domestic environmentally friendly energy.
The Presidential Decree also regulates that funding for the accelerated electricity
development programme is sourced from the state budget, PT PLN, and other legal
forms of funding regulated under prevailing laws. In carrying out this programme,
PT PLN is authorised to cooperate with IPP through an electricity purchase programme.
The 10GW acceleration programme is an important milestone in preparing future
energy reserves. During the second phase of this acceleration program, PT PLN plans to
build a total of 6.4GW-worth of power plants, requiring a total investment of $7.605
million. IPPs will build a total of 4.2GW-worth of power plants, requiring investment
of $8.450 million.
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